Poland not immune to fiscal recklessness…apparently

The country has problems in the usual categories:

-overbuilding…”gigantic shopping malls sprang up across the country (Warsaw alone, population 1.7m, has five mega shopping centres, to compare  London population 7.5m has four)”

-loans taken out in foreign currency…”The falling exchange rate of the PLN against the euro translates into rising lease costs — a result of leases in shopping and entertainment centres usually being made in euro and settled in the Polish zloty”

-commercial real estate…”office space that was seen as the biggest golden ticket in the boom years, based on the notion the country would emerge as the financial hub of emerging Europe”

Source:  FT Alpha

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